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Merger of Dish Network, DirecTV possible

Discussion in 'Off-Topic Discussion' started by Rickaren, Nov 8, 2011.

  1. Rickaren

    Rickaren New Member Staff Member

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    Merger of Dish Network, DirecTV possible, says Ergen

    11/08/2011
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    Dish Network chairman Charlie Ergen said approval of AT&T's proposed acquisition of T-Mobile could lead to more mergers and open the door for a deal between the nation's No. 2 satellite-TV provider and rival DirecTV.


    "If that merger is allowed to go forward, then I don't think there'd be any problem with us merging with DirecTV," Ergen said Monday during a conference call with analysts. "There'd probably be a lot of mergers that could happen that people never thought could happen."
    He added that if the deal is blocked, a DirecTV-Dish marriage would be "problematic."


    Ergen's remarks were in response to an analyst's question about the prospects that Dish would consider bulking up through a merger with DirecTV, given the growth of alternative pay-TV offerings from phone companies such as Verizon Communications.


    Regulators blocked a proposed merger between Dish and DirecTV, the No. 1 satellite-TV company, in 2002.

    The Department of Justice has sued to block the AT&T-T-Mobile merger over fears that it would lead to higher prices and lower-quality service.


    Dish is an opponent of the $39 billion deal, stating earlier this year that it would harm consumers and competition by potentially discouraging new entrants into wireless.


    With plans to launch a mobile broadband network, Douglas County-based Dish has spent more than $2 billion on two companies that own large blocks of wireless spectrum.


    Ergen said Dish is "prepared to go into wireless by ourselves" but would prefer a partner.


    "The desired path and most prudent path, the path that has got the greatest chance of success, would be to partner with others," he said. "There could be a variety of different people that could fit that bill, some in the business today and some that aren't in the business today but would have similar motivations to us."


    Ergen doesn't view mobile broadband as a replacement for wired home Internet but rather as a service that subscribers can use to access Dish's video content on the go and on devices such as tablets and smartphones.


    Analysts have speculated that a likely partner for Dish's mobile plans could be Sprint Nextel, the nation's No. 3 wireless-service provider, or regional carrier MetroPCS.


    Dish announced Monday a one-time, $2-a-share dividend, a move Ergen attributed in part to the company's inability to find additional acquisitions.


    Ergen said the company examined video-streaming service Hulu and others but didn't disclose specifics.
    Also Monday, Dish reported that it lost 111,000 subscribers during the third quarter and now serves just fewer than 14 million subscribers.
    Net income increased 30 percent to $319 million, up from $245 million during the same period a year ago.


    SOURCE
     
  2. sparkyscott21

    sparkyscott21 Moderator Staff Member

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    Can anybody say monopoly??
     
  3. eferz

    eferz Well-Known Member

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    It wouldn't be any different when XM & Sirius merged.
     
  4. alphawave7

    alphawave7 Moderator Staff Member

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    ..and what a huge success that was! :p
     
  5. sparkyscott21

    sparkyscott21 Moderator Staff Member

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    Or banking, insurance co. also phone services.. ect....
     
  6. towboy123

    towboy123 New Member

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    Not really they still have to compete with the local cable service provider.
     
  7. ChrisG8

    ChrisG8 Well-Known Member

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    Yes, it would, completely different markets. As mentioned, the proposed Dish/DirecTV merger has already been shot down once. Sirius and XM compete with free radio everywhere in the country, no competition for pay satellite radio means nothing to our government. There are rural areas in this country with no cable TV, no or very limited OTA TV and the only option is satellite TV and competition is needed to keep that market honest. I don't think a merger would pass antitrust scrutiny if tried again and if you followed the attempt 9 years ago, you probably know DirecTV didn't think it would fly then. Dish paid a huge penalty to DirecTV when it failed the first time.
     
  8. ChrisG8

    ChrisG8 Well-Known Member

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    I lived in a rural area in SW Missouri as recently as 2006, no cable TV service available, but I had a DirecTV dish on my roof and so did many of the other homes in the area and about the same number had Dish Network service. I also had an antenna on the roof and could get a few network TV stations from Springfield, Missouri. When I left, I couldn't even get CBS digital TV but of course that was prior to the forced conversion and I don't know if the CBS affiliate provides a signal to that area now but I would sure hope so. The analog signal from CBS wasn't acceptable either. I don't know how many millions of households are in similar circumstances now but the number isn't small and competition for satellite TV is important to that market.

    Internet TV is available to some degree in markets like that as some have DSL service but I don't think that would have any impact on an evaluation of a new Dish Network and DirecTV merger. I do agree if all markets had cable TV, competition between satellite companies would not be very important.
     
  9. towboy123

    towboy123 New Member

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    While that is true they don't change price by region. The price there packages nationally to compete with cable companies. If they didn't do national pricing I would agree.

    Sent from my DROIDX using Tapatalk
     
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  10. ChrisG8

    ChrisG8 Well-Known Member

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    Of course they don't price packages by region but as rural subscribers are becoming a bigger percentage of the total subscriber base, raising prices as a result of no competition for a large portion of their market is a serious concern. Dish Network and DirecTV both give discounts to customers to retain their business, take away that bargaining chip and customers will be paying higher prices. If you have ever subscribed to DirecTV or Dish Network you may know about their retention departments. Subscribers in cities can get discounts from cable or either satellite company to continue a subscription. If Dish DirecTV is the only option in rural Galena, MO, my call would go something like I am considering switching, well there isn't anybody to switch to but I think it would nice if you would offer me a discount to sign up for another year, somehow that just doesn't sound too effective. If DirecTV was available the call to Dish Network would be DirecTV offers $49.99 a month for the first two years of a new contract, I am thinking of switching. Either Dish offers a dscount or I switch and get that special offer, either way I benefit from competition.

    This isn't a complicatd concept, no competition is a bad thing and city subscribers will get much better deals than rural subscribers if Dish or DirecTV disappears. AT&T raised my DSL rate here in Little Rock, I switched to Comcast cable internet, faster and $10 cheaper than the new DSL rate., When I called to cancel, the AT&T rep told me I could have gotten a great deal to stay with AT&T, all I could do was say it wasn't offered when I called about the unannounced rate increase that showed up on the bill. Competition is absolutely necessary, monopolies for any market segment are bad.

    I accidentally hit thank you when trying to hit reply with quote but your post is worth a thank you anyway.
     
    Last edited: Nov 9, 2011
  11. towboy123

    towboy123 New Member

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    I wouldn't think the outlying areas are how they adjust their packages. I believe they have to compete with the "local cable co" regardless of whether or not outlying areas have the same competition. The moment they price by region we are all screwed
     

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